Esso Australia’s Gippsland Basin JV to capture and reuse CO2

Esso Australia Pty Ltd, a subsidiary of ExxonMobil Australia Pty Ltd, said the Gippsland Basin Joint Venture (JV) had entered an agreement with Air Liquide Australia to capture and reuse carbon dioxide (CO2) extracted from Gippsland gas. 

The Gippsland Basin Joint Venture is a 50-50 joint venture between BHP Petroleum (Bass Strait) Pty Ltd and Esso Australia Resources Pty Ltd, operated by Esso Australia Pty Ltd. 

Under the long-term CO2 supply agreement, Air Liquide will build a brand new CO2 processing and purification facility next to the Longford Gas Plants. Esso will construct facilities at the Longford Gas Conditioning Plant, which will enable it to send CO2 directly to Air Liquide’s new processing facility for purification to food and beverage grade quality. 

“Carbon dioxide occurs naturally in the gas sourced from the Gippsland Basin and most CO2 must be removed before the natural gas can be used to power Australian homes and businesses,” said Esso Australia Chairman Nathan Fay. 

“Under the new agreement, Esso will capture and send excess CO2 from the Longford Gas Conditioning Plant to Air Liquide, who will then process and provide the in-demand gas in various forms to Australian businesses.” 

CO2 is typically used by the food, beverage, hospitality, manufacturing and medical industries for a variety of important functions that are essential to everyday life, including food preservation and the transportation of blood and other human specimens such as plasmas. It is also used in soft drink, beer and wine production, meat and poultry processing, water treatment, desalination and cold storage. 

Construction of the new Air Liquide facility and modifications to the Longford Gas Conditioning Plant are expected to begin in 2021, subject to regulatory approvals. Approximately 60 local jobs are expected to be created during the construction phase of the project.